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8 Benefits of Outsourcing Warehouse Staffing to Reduce Overall Costs

1. No Workers Comp Responsibility for Employers

Employers pay no worker's compensation on the employees we staff. It's built into our staffing agency costs. So, if an accident does occur on site involving an Action Logistix employee, your workers comp experience modifier doesn't go up. This translates into cost savings for you!

2. Eliminate Unemployment Paperwork and Claims

HR departments have enough to focus on with handling in-house staffing employment needs. So a great benefit that we offer to your human resources department, is we handle our employees' paperwork and claims. Since staffing employees aren't an employee of your company, we take over the sheer volume of unemployment claims. Your insurance isn't hit with those clams and HR isn't loaded down with unemployment claims filings.

3. Eliminate Withholding and Garnishment Tracking and Recording

Your HR department has other things they could be spending their valuable time on, rather than answering child support questions, ensuring payments are being made on behalf of the employees, and maintaining a state website login and payment posting. We handle all of this on your behalf, which is especially beneficial for your high turnover and seasonal positions!

4. Eliminate ACA Reporting

ACA reporting is potentially one of the biggest headaches for HR managers. With the ACA, self-insured employers and those with 50+ employees must manage the sign-up, PCORI reporting, 1094s, and keep updated on the annual changes. When you use a specialized warehouse staffing agency for your temp hire needs, we handle these types of tasks on your behalf.

5. No Payroll Taxes or Benefit Costs

Since we're the 'employer of record' for our temp employees, we're responsible for all payroll taxes and benefits costs. This can be a significant savings for companies and makes up for the higher cost of staff brought on from employment agencies. With payroll taxes accounting for 6.2% of salary, plus benefits on average 30% and the costs of vacations, holidays, sick leave and personal leave equaling around 3.6% - this means a savings of recruiting costs and the general HR time and headaches to manage it all. We think that using a specialized warehouse staffing agency like Action Logistix is a no-brainer!

6. Maintain Ideal Staffing Levels

Believe it or not, we hear about employers who must ask their warehouse employees to work overtime! Why? Because they can't maintain ideal staffing levels. Either the current workforce is aging, retiring, or needing extended medical leaves, or there's a high turnover requiring constant replacement - regardless of the reason, HR managers are feeling the heat and struggling to meet deadlines. We're a reliable resource for filling those gaps in staffing throughout the ebbs and flows of project fluctuations. Overall, this can boost productivity and reduce issues related to turnover.

7. Our Employees Take No Vacations

It's that time of year when employees are scheduling vacations for spring break, long holiday weekends and summer getaways. An easy and cost effective solution for maintaining your production levels is to hire a reputable and dependable warehouse staffing agency! HR and warehouse managers can rely on us to fill those gaps in staffing rather than paying more in overtime to cover leave requests.

8. Reduce Hiring Risks

Build your strongest team ever by using a specialized warehouse staffing agency. The perk? You're starting them off as a temp employee so you can 'Try Before You Buy'. We spend 100% of our time culling through resumes, screening applicants, running extensive background checks and conducting in-depth behavioral interviews to find high caliber employees to fit your needs. When it's time to hire another permanent employee, our goal is that you can look to your temp workers as your best and brightest! Since you'll have had several months to review their skills in action, your hiring risk is significantly reduced.

Total Cost Savings

The best part of using a temporary staffing agency is reducing employer overall costs. It comes in many forms. Here's a list of some of benefits of outsourcing warehouse staffing:

  • Reduced payroll cost
  • No workers comp liability
  • No vacation days to fund
  • No retirement or health benefits to pay for and manage
  • Reduced overtime
  • Lower training and onboarding
  • Increased productivity combined with lower turnover

We're Not Like Other Staffing Agencies!

If you've experienced working with staffing agencies in the past who've promised solutions, but under-delivered, you may be a little hesitant to jump onboard. We're confident that we can provide you with a positive experience that you'll quickly see the benefits of because we KNOW we are doing it differently and finding a higher caliber of employees! Why? Because our customers are telling us! Our employers have stated that Action Logistix is providing a higher caliber of employee due to our detailed testing, pre-screening process, drug testing and personal interviews.

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